States Members have agreed to purchase the site of the disused Seaside Café and give it to the National Trust for Jersey.
The land at Grève De Lecq will be kept for public use, and the car park will be reopened.
National Trust for Jersey will receive the land on the condition it is used for environmental, cultural and social public benefit.
The site will cost taxpayers £3.6 million, and the Trust will decide whether it will be turned into an education centre or a café, or largely returned to nature.
Chief Minister Lyndon Farnham says the National Trust has been chosen as they are 'creative' and deliver 'high-quality' projects.
"They are an existing shareholder of assets at Grève De Lecq Bay, and the public benefit is at the heart of their organisation. It's why they do what they do."
Constable of St Helier, Simon Crowcroft, says the proposal will benefit people living in St Helier wishing to escape the busy town.
"Grève De Lecq belongs to us all, it doesn't just belong to those who are lucky enough to live in coastal parishes.
It particularly is important to St Helier residents who put up with so much living in the town, particularly in the town that is not well-served with open space or with parking or with other quality of life measures."
It has also been decided - following an amendment from Deputy Lucy Stephenson - that if the National Trust ever decides to dispose of the site in the future, it must be given back to the public.
The view of the bay from the Seaside Café.
Growing impatient, Deputy Farnham lodged this latest request earlier this year, saying he had negotiated a price himself of £3.6m.
The land was sold by the previous owners in 2020, and developers got planning permission in January 2022 to create a four-bedroom luxury private home and 100-seater eatery.
The site was on the market for £5 million undeveloped, or £11 million with the completed buildings.
The National Trust’s images of potential options for the site.